PubMatic (NASDAQ:PUBM) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded PubMatic to “Hold” from “Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $18.25.
• PubMatic opened at $16.50 and recently reported stronger-than-expected quarterly results, with revenue of $78.59 million versus the $68.95 million consensus estimate and an EPS loss of $0.03.
• Insiders have sold approximately 625,703 shares worth $9.65 million over the past 90 days, while institutional investors and hedge funds own 64.26% of the company.

PubMatic (NASDAQ:PUBM - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Other research analysts have also issued reports about the company. Lake Street Capital reaffirmed a "buy" rating and set a $20.00 target price on shares of PubMatic in a research report on Friday, August 7th. Evercore reiterated an "outperform" rating and issued a $21.00 price target on shares of PubMatic in a research report on Monday, August 10th. Scotiabank raised PubMatic from a "sector perform" rating to a "sector outperform" rating and increased their price target for the company from $8.00 to $21.00 in a research note on Friday, August 7th. B. Riley Financial restated a "buy" rating on shares of PubMatic in a research report on Friday, August 7th. Finally, Jefferies Financial Group lifted their price objective on PubMatic from $10.00 to $18.00 and gave the stock a "hold" rating in a research note on Tuesday, August 11th. Ten investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $18.25.

PubMatic Price Performance

PubMatic stock opened at $16.50 on Friday. The business has a 50 day moving average of $14.77 and a 200-day moving average of $11.29. PubMatic has a 1 year low of $6.15 and a 1 year high of $18.44. The company has a market capitalization of $751.58 million, a P/E ratio of -55.00 and a beta of 1.58.

PubMatic (NASDAQ:PUBM - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.15. PubMatic had a negative net margin of 4.66% and a negative return on equity of 5.41%. The business had revenue of $78.59 million for the quarter, compared to the consensus estimate of $68.95 million. Equities analysts anticipate that PubMatic will post -0.09 EPS for the current year.

Insider Activity

In related news, CEO Rajeev K. Goel sold 211,302 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $17.74, for a total transaction of $3,748,497.48. Following the transaction, the chief executive officer directly owned 31,692 shares of the company's stock, valued at approximately $562,216.08. This represents a 86.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Steven Pantelick sold 23,548 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $13.65, for a total value of $321,430.20. Following the completion of the transaction, the chief financial officer owned 64,820 shares in the company, valued at approximately $884,793. The trade was a 26.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 625,703 shares of company stock worth $9,649,686. Company insiders own 27.78% of the company's stock.

Hedge Funds Weigh In On PubMatic

A number of institutional investors have recently modified their holdings of PUBM. Renaissance Technologies LLC lifted its holdings in shares of PubMatic by 26.3% in the 1st quarter. Renaissance Technologies LLC now owns 1,540,533 shares of the company's stock worth $12,602,000 after purchasing an additional 321,200 shares in the last quarter. Wellington Management Group LLP increased its stake in PubMatic by 10.1% during the 3rd quarter. Wellington Management Group LLP now owns 1,468,503 shares of the company's stock valued at $12,159,000 after purchasing an additional 135,070 shares in the last quarter. CenterBook Partners LP raised its holdings in PubMatic by 53.3% during the fourth quarter. CenterBook Partners LP now owns 1,147,055 shares of the company's stock worth $10,174,000 after buying an additional 398,595 shares during the last quarter. Jacobs Levy Equity Management Inc. lifted its stake in shares of PubMatic by 9.1% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 929,249 shares of the company's stock valued at $8,242,000 after buying an additional 77,566 shares in the last quarter. Finally, Millennium Management LLC grew its holdings in shares of PubMatic by 320.0% during the fourth quarter. Millennium Management LLC now owns 918,127 shares of the company's stock valued at $8,144,000 after buying an additional 699,549 shares during the last quarter. 64.26% of the stock is owned by institutional investors and hedge funds.

About PubMatic

PubMatic is a cloud-based digital advertising technology company that provides a supply-side platform (SSP) enabling publishers to automate and optimize the sale of their ad inventory across display, mobile, video and connected TV channels. Its core offerings include real-time bidding infrastructure, header bidding solutions under the OpenWrap brand and data analytics tools that deliver actionable insights on audience engagement and monetization performance. By facilitating seamless auctions and providing transparent reporting, PubMatic helps publishers maximize yield while improving buyer experiences.

Founded in 2006 by Rajeev Goel and a team of ad-tech veterans, PubMatic grew from an early entrant in programmatic selling to a publicly traded company, listing on the Nasdaq symbol: PUBM in December 2020.

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